• World
  • Columnist
  • Commodities
  • WORLD BUSINESS & ECONOMY
  • Executive Knowledge Series
  • Finance
  • Manufacturing
  • Markets
  • Risk & Governance
  • Small Business
  • Technology, Media & Innovation
  • Comments
  • Business AM WebTV
  • Login

Businessamlive
  • FRONTPAGE
  • FINANCE
    • AllAsset ManagementAuditBankingBondBudgetCapital MarketsC&I LeasingCurrencyDealDebt marketForexFund RaisingFundingGovernmentHedge FundsInsuranceInvestmentInvestorInvestor ServicesMergers & AcquistionsMoney marketTreasury BillsMortgagePensionsPersonal financePonziQuantitative EasingshareTaxationTSAWealth Management
      Finance

      CBN says cryptocurrency ban in interest of Nigerians

      February 25, 2021

      Companies-in-Action

      Zenith Bank in strong operational performance as profit rises 10.4% to N230.56bn in FY20

      February 25, 2021

      Companies

      United Capital posts strong numbers as earnings rise 50% to N12.87bn in 2020

      February 23, 2021

      Finance

      CIBN revives mentorship initiative for bank workers

      February 20, 2021

  • MARKETS
  • ECONOMY
    • AllAfricaAgricAirportsAmericaAsiaAustraliaBreakthroughDealEuropeForeign InvestmentsforexGlobal marketGovernanceIMFMiddle EastNECANigeriaOutlookRich listSouth AfricaSport BusinessTradeU.KWest AfricaWorld Economic forum
      Insurance Business

      Enterprise risk management surges amid pandemic, RIMS reports

      February 25, 2021

      WORLD BUSINESS & ECONOMY

      Hyundai to recall 82,000 electric cars over battery malfunction

      February 25, 2021

      Frontpage

      Global health insurance premiums fall amid pandemic, says new report

      February 24, 2021

      Frontpage

      Insurance M&A record highest growth in Africa, Middle East in 2020

      February 23, 2021

  • COMMODITIES
  • ENERGY
    • AllConferenceElectricityOil and GasPowerRenewable
      Frontpage

      Nigerian engineers to manage world’s largest single train refinery

      22 hrs

      Frontpage

      NNPC, again, denies FG planning increase in fuel price this month

      22 hrs

      Frontpage

      Nigeria, amid challenges to gas-to-power drive, needs to build institutional capacity – experts

      March 1, 2021

      Oil and Gas

      REA delivers 100kW hybrid solar mini grid to Edo community

      February 25, 2021

  • TECHNOLOGY
  • MANUFACTURING
  • ANALYSIS
    • Analyst Insight

      The bull run still has legs despite inflation concerns

      March 1, 2021

      Analyst Insight

      Incorporating three lines of defence in data privacy schemes

      March 1, 2021

      Analyst Insight

      Coronation MB analysts project sharp rates rise after Nigeria recession exit

      February 25, 2021

      Analyst Insight

      How NITDA can further foster data protection compliance in Nigeria

      February 22, 2021

Frontpage

Mubadala, Etisalat Nigeria, banks still talking, no final decision until next week

SME Conference 2019
Phillip Isakpa

Phillip Isakpa is  Businessamlive Executive Editor.
You can contact him on phillipi@businessamlive.com with stories and commentary.

June 16, 20171.3K views0 comments

Yemi Osinbajo, Ag. President Etisalat delegation. R-L; Acting President, Hakeem Bello-Osagie, Chairman Etisalat Nigeria, Waheed Al-Muhari, Deputy CEO Etisalat, Kahled Al-Qubaisi, Director of Mubadala Development Company (Sovereign Wealth Fund of the Government of Dubai), and others during meeting with Etisalat delegation at the State House. PHOTO; Sunday Ogaheze. MAY 16 2017.

• Nigerian entity majorly run by Nigerians as only one staff from Mubadala/Etisalat UAE…


Mubadala Development Company, the middle-east majority shareholder in Nigeria’s fourth largest mobile phone operator, Etisalat Nigeria Limited and a consortium of bank creditors are still in talks with the company’s minority shareholders about the future direction of the business and Mubudala’s stake in the company.

“Nothing has been finalised. We are still talking and until next week no firm position will be known about Mubadala’s future role in the business,” a very senior member of the company close to the discussions told Businessamlive Friday.

This new position comes against information circulating that the Middle-east company has pulled out its investments from the company. Investment analysts explained to Businessamlive that withdrawals by shareholders, especially majority shareholders, are not as simple as has been made out.

“What you are looking at is a huge investment. Even if Mubadala was trying to cut losses and leave, this would have to go through painstaking and rigorous discussions and negotiations with a search for an acceptable suitor to take over the shareholdings as Mubadala will want to sell and not abandon its stake in the company,” said one investment analyst.

Read Also:

  • Eastern railway rehabilitation begins next week, says FG
  • Nigeria records 6% drop in vessel traffic
  • Revealed! Nigeria among countries most sceptical about 5G technology
  • Sincere commitment to reduce corruption in Nigeria
  • Unilever Nigeria to complete tea business separation by end of 2021

Although Mubadala is the majority shareholder in the business with 70 percent, market watchers say the company’s management model is largely different from what obtains in many companies that are majority controlled by foreigners. They told Businessamlive that Etisalat Nigeria is managed and controlled by Nigerians, with one telecom sector analyst saying that the total number of staff from Mubadala and Etisalat, UAE,  in the company is just one.

Businessamlive learnt that other than this one technical staff, there are the odd couple of expatriates who come in to handle specific contract jobs when the wholly Nigerian management has need for them.

The Etisalat Nigeria problem came to a head when a consortium of banks moved on it over a foreign currency debt facility it took for an ambitious network rehabilitation and operational expansion in the country.

The consortium of local and foreign financial institutions, led by Access Bank, is trying to recover a 2015 loan facility amounting to $1.72 billion (about N541.8 billion). Etisalat Nigeria negotiated a debt servicing arrangement but ran into economic headwinds in a market where mobile voice had become saturated and leading mobile player, MTN, had remained dominant.

But there are many who see positives in this development even in the event that Mubadala leaves. According to one investment banker, if it turns out that Mubadala decides to leave, it would open up fresh opportunity for new investors to come into the Nigerian telecom space, with also the possibility of high net worth Nigerian investors having a chance to have a go at taking stakes in the company.

Besides, the Nigerian minority investors who have worked so well with Mubadala/Etisalat UAE, who gave Nigerians a free hand to run and manage the company’s operations in the country, may be trying in the negotiations to convince the former to exercise more patience and have faith in the Nigerian team.

The company obtained its unified access license, including a mobile license and spectrum in the GSM 1800 and 900 MHZ bands from the Nigerian Communication Commission (NCC) in January 2007, but did not begin operation until 2009.

Since then, it has climbed the ladder to become Nigeria’s number four biggest mobile operator with an estimated 21 million subscribers, representing about 12.9 percent of the telecom market share as at January 2017.

Its competitors in the market include MTN, which has 60 million, or 40 percent market share; Globacom with 37million, or 24.6 percent; and Airtel with 34.6 million, or 22.8 percent.

Share on Facebook Tweet Email
PreviousRolls-Royce sees demand for a new mid-market jet
NextCentral Bank of India and digital banking

Leave a comment

- Cancel reply

MARKET DATA

Market Videos

Recent Posts

  • PHOTO NEWS: Nigeria receives first consignment of COVID-19 vaccine
  • MTN Nigeria leads pack of top-earning directors’ list for 2020 financial year
  • Eastern railway rehabilitation begins next week, says FG
  • MTN recovers from Covid-19 aftermath to post 15% revenue growth to N1.35trn  
  • Pandemic takes good slice off Nestle Nigeria as profit down 14% to N39.21bn

World

Africa

Buhari, Okonjo-Iweala congratulate Adesina over reelection as AfDB President

Europe

EU businesses to cut investments in 2020, says EIB report

America

U.S. increases cost of visa application for Nigerians

Africa

Thatcher-Loving Nigeria Candidate Plans to Overhaul Economy

Africa

AfDB scales up industrialization pace on the continent, delivers improved business access to finance, skills, energy

Frontpage posts

0

August PMI shows Nigeria’s economy in for more constrictions on pandemic

Frontpage August 27, 2020

1
2

Moody’s changes Nigeria’s ratings from stable to negative

Frontpage December 5, 2019

3

Africa’s agric business portfolio to hit $1trn by 2030, say sector leaders

Frontpage November 10, 2018

4

GenCos release 4,426 MW of electricity to national grid – Report 

Frontpage May 8, 2019

5

Germany emerges country with world’s largest current account surplus in 2018

Frontpage February 19, 2019

SUPPORT

  • Photo Gallery
  • Help Centre
  • About Us
  • Accessibility

LEGAL & PRIVACY

  • Terms & Conditions
  • Privacy
  • Cookies
  • Copyright

SERVICES

  • Conferences & Events
  • Analysts Research
  • Advertising Rate
  • Ebooks

TOOLS

  • Portfolio
  • Newsletters
  • News feed
  • Currency Converter

SUBSCRIBE

Join us to get latest updates on business related news.

[mc4wp_form id="3076"]
  • ABOUT US
  • CONTACT US
  • CAREERS
  • TERMS & CONDITIONS
  • PRIVACY POLICY
Copyright 2017. All rights reserved. BusinessAMLive. A Businessnewscorp Member Company.